The Australian Dollar declined as expected against its US counterpart after prices took out support at the bottom of a rising channel set from late January. Near-term support is at 0.9201, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 0.9041. Alternatively, a move back above the 0.93 figure exposes the channel floor at 0.9368, followed by the May 14 high at 0.9408.

We entered short AUDUSD at 0.9328 in line with our fundamental outlook, targeting0.9201 as the initial objective. A stop-loss will be activated on a daily close above 0.9408. We will take profit on half of the trade at the first target and trail the stop-loss to the breakeven level.